The Fed Just Got Less Scary. Bonds Are Still Screaming

Less Fed fear, same bond problem

Softer PCE has taken some of the Fed fear out of the market, with October hike odds falling from around 45% to 37%.

The problem is that the long end isn't getting the memo. The 30-year remains around 5.64%, meaning the dovish repricing at the front end has so far offered very little relief to long duration.